In The Kitchen: Now that the crisis caused by the housing bubble is over (sic) we are faced with the enormous bubble in central banking that grew to contain it. Our economies no longer have isolated bubbles, they have become a chain of bubbles upon bubbles with no apparent end. The cure has become as dangerous as the disease.
Forecast: Soothsayers now say that the Republican's Big Budget Battle will not be fought in October (over the continuing resolution to continue the unresolved budget problems) but in November (by denying the Treasury the ability to issue any more bonds). All to 'make a stand' against the Affordable Care Act. While the governmental lurching to a halt that failing to pass at least a continuing resolution (no way an actual budget is ever going to be passed again) would be bad, the damage failing to raise the debt limit would do would be economically disastrous - immediately and with world-wide and lasting damage. That it would also be disastrous to the political future of the Republican Party does not seem to bother them at all. Wouldn't bother me, either.
Slip Sliding: The June Case-Shiller house price index showed a modest 0.89% increase m/m. This was the third consecutive decline in the growth rate of house prices, and the smallest increase in nearly a year. Bob Shiller views the current housing market with skepticism, "none of this is real, the housing market has gotten very speculative.' And then he added the kiss of death, describing the current housing market as "driven by irrational exuberance." Is there an echo in here?
Fine, Just Fine: The US is demanding a minimum of $6 billion from JPMorgan for losses due to the 'London Whale' scam in “mis-selling” MBS. JPMorgan is, of course resisting – if only because it would set a bad precedent and encourage others to join the feast.
Medical Costs: Women's healthcare is more expensive than men's because women have breasts. See, you can learn a lot by watching FOX.
Overtly Covert: Police at Wisconsin's Capitol building tackled and beat a photographer recording a progressive group singing about love and democracy. They also tackled and hauled off two men who were were just standing there watching while black. The whole thing was captured on the capitol's covert surveillance cameras. What do these cops tell their kids when they get home?
Rose Is Rose: The state programs set up to implement the Affordable Care Act all have their own names, and none is called 'Obamacare'. It won't be long before Obamacare's happy customers are calling Washington and demanding not to be forced to join Obamacare because they have such a good state program.
The Parting Shot: